So, what’s driving this trend?
The “COVID Buying Frenzy” caused prices to skyrocket so rapidly that it pushed at least 30% of prospective buyers out of our market in 2020-21. For instance, in 2019, the median sale price for a single-family home in the Town of Jackson was $1.288 million, whereas today it stands at $2.7 million, a staggering 110% increase for the first nine months of 2023. It’s worth noting that this surge in values wasn’t unique to our locality; many communities across the country experienced similar rapid price increases.
Additionally, the Federal Reserve’s decision to raise interest rates in an effort to combat inflation has had a significant impact. Conventional interest rates have doubled over the past three years, making it increasingly difficult for both local residents and potential second homeowners to qualify for mortgages or justify property purchases. Another noteworthy statistic: 69% of all real estate transactions in 2023 have been conducted in cash.
The higher interest rates not only priced potential local buyers out of the market but also deterred many locals who were contemplating selling their homes. For those without substantial equity built up, the prospect of financing their next purchase at double the interest rate of their current home loan is daunting, further exacerbating the inventory shortage.
Nevertheless, there are still bright spots in our market. Homes priced under $1 million and condominiums/townhomes under $500,000 continue to be in high demand. Additionally, there are properties scattered throughout the valley that are hitting the market at or below current market values and selling within a few weeks